Journal of Economics, Finance and Administrative Science



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Journal of Economics, Finance and Administrative Science (Formerly Cuadernos de Difusión) Academic publication of Universidad ESAN ISSN 2007-1886 (printed) ISSN 2218-0648 (on line) Volume 16, Issue 30, June 2011 The Journal of Economics, Finance and Administrative Science is the new name of our formerly Cuadernos de Difusión, the bi-annual academic publication of Universidad ESAN. Articles written in English and Spanish are included, broadening our scope to a larger audience. The Journal of Economics Finance and Administrative Science aims to provide the most relevant research and current developments in all the fields of the economics, finance and administrative sciences worldwide. In order to accomplish our purpose, the articles go through a rigorous process of evaluation and selection, according to international editorial conventions. Our target audience includes researchers, university faculty, students, the business and entrepreneurial world. The Universidad ESAN, with more than 47 years of experience in the higher education field and post graduate studies, desires to contribute to the academic community with the most outstanding pieces of research. We gratefully welcome suggestions and contributions from our readers in order to help us meet our goals.

Director Peter Yamakawa, Ph.D. Universidad ESAN (Peru) Editor IN CHIEF Jorge Guillén, Ph.D. Universidad ESAN (Peru) Associate Editors Jerry Haar, Ph.D. Florida International University (USA) Ajay Manrai, Ph.D. University of Delaware Narasimhan Srinivasan, Ph.D. University of Connecticut (USA) Jorge Talavera, Ph.D. Universidad ESAN (Peru) Ajay Vinze, Ph.D. Arizona State University (USA) Jonathan Wareham, Ph.D. ESADE, Universidad Ramon Llull (Spain) Alejandro Arrieta, Ph.D. Indiana University (USA) Jean Pierre Auffret, Ph.D. George Mason University (USA) Michel Henry Bouchet, Ph.D. CERAM-Sophia Antipolis (France) Alberto Chong, Ph.D. Inter-American Development Bank Anabella Dávila, Ph.D. Instituto Tecnológico y de Estudios Superiores de Monterrey (Mexico) Marc Escrihuela-Villar, Ph.D. Universidad de las Islas Baleares (Spain) Anne L. Fetter, Ph.D. University of Phoenix (USA) Isabel Gallego, Ph.D. Universidad de Salamanca (Spain) Jorge Huarachi, Ph.D. Universidad Católica Santo Toribio de Mogrovejo (Peru) Yasushi Kikuchi, Ph.D. Waseda University (Japan) Editorial Board Sumit Kundu, Ph.D. Florida International University (USA) Virginia Lasio, Ph.D. Escuela Superior Politécnica del Litoral (Ecuador) Sergio Matviuk, Ph.D. Regent University (USA) Rubén Mosqueda, Ph.D. Instituto Tecnológico y de Estudios Superiores de Monterrey (Mexico) Samuel Mongrut, Ph.D. Instituto Tecnológico y de Estudios Superiores de Monterrey (Mexico) David Muñoz, Ph.D. Instituto Tecnológico Autónomo de México (Mexico) Hugo Ñopo, Ph.D. Inter-American Development Bank Toshio Obi, Ph.D. Waseda University (Japan) Vicenta Sierra, Ph.D. ESADE, Universidad Ramon Llull (Spain) Licensed by: EBSCO HOST Economía y Negocios Informe Académico (Gale Cengage Learning) Academic OneFile (Gale Cengage Learning) Social Science Research Network indexed by: Latindex EconLit Executive Editor Norma Barúa, M. A. Universidad ESAN, 2009 Av. Alonso de Molina 1652, Surco, Lima-Perú Apartado postal 1846, Lima 100, Perú Telfs.: (51-1) 317-7200 / (51-1) 712-7200 Fax: (51-1) 345-1328 esanediciones@esan.edu.pe www.esan.edu.pe Registro de Proyecto Editorial N. 21501401101310 Hecho el Depósito Legal en la Biblioteca Nacional del Perú N.º 99-3242 Tiraje: 300 ejemplares Editorial Advisor Ada Ampuero Copyeditors Team Rosa Ku Graphic Designer Ana María Tessey Printing Tarea Asociación Gráfica Educativa Pasaje María Auxiliadora 156, Breña Lima, Perú The papers published in this Journal are exclusive responsibility of the authors and do not necessarily express the opinion of the Universidad Esan. No responsibility is accepted for the accuracy of the information contained in the text. Citation is authorized with reference to the source.

Table of Contents Editorial 5 Articles Marc Escrihuela-Villar On Welfare Effects of Horizontal Mergers with Product Differentiation 7 Jesús C. Peña-Vinces, Saulo Bravo, Félix A. Álvarez & Duván A. Pineda Analysis of Characteristics of Business Incubators in Colombia: A Case Study 13 Joydeb Sasmal Distributive Politics, Nature of Government Spending and Economic Growth in a Low Income Democracy 31 Santiago Roca Perú: Políticas para cerrar la brecha de la balanza de conocimientos 51 Ana Emilia Cordero Borjas Formulación estratégica. Caso: empresas del sector alimentos y bebidas del estado Carabobo 63 Juan Gregorio Arrieta Posada Aspectos a considerar para una buena gestión en los almacenes de las empresas (Centros de Distribución, cedis) 83

Editorial These pages bring our 30th issue of the Journal of Economics, Finance and Administrative Science (JEFAS), which gives our readers the opportunity to review articles of cutting edge studies in all fields of business sciences. This issue makes available new worldwide researches, as per the requirements established by most prestigious databases. A common denominator in our articles is the theoretical framework, its transference to business practice and, as a result, their contribution to their area of expertise may be guaranteed. The first article title is On welfare effects of horizontal mergers with product Differentiation, a study where the author applies a non-spatial (Chamberlinian) product differentiation model to analyze the welfare effects of horizontal mergers with quantity competition. It is a theoretical paper in industrial organization that demonstrates that the degree of product differentiation is a crucial factor to assess the welfare effects of a merger Based on the research methodology of case studies, the second article Análisis de las Características de las Incubadoras de Empresas en Colombia: Un estudio de Casos analyzes the main characteristics that condition the business survival of four incubators in Colombia. It follows the theoretical paper Distributive Politics, Nature of Government Spending and Economic Growth in a Low Income Democracy, which analyzes how the government in a democratic setup of the developing world manipulates fiscal instruments to maximize its political gain to retain power. The article Perú: Políticas para cerrar la brecha de la balanza de conocimientos is an empirical paper that shows how macroeconomic turmoil contributes negatively to the attempts of industrialization and increases the economic crisis within the country. The next paper, Formulación Estratégica. Caso: Empresas del Sector Alimentos y Bebidas del Estado Carabobo, analyzes the process of strategic formulation in sectors of the food industry in Venezuela. Finally, the paper Aspectos a considerar para una buena gestión en los almacenes de las empresas presents different methods that are necessary to get an excellent administration and control of a distribution center The Journal of Economics and Administrative Science (JEFAS) offers a diversity of excellent papers, both in English and Spanish, catering a regional and international audience. They are the result of rigorous double blinded referee reports, which guarantee that our publication meet the high standards we aim and has the highest impact in the academic literature. Peter Yamakawa T., Ph.D. Director